Residential developers with record results

Sales in the residential real estate sector hit record high in 2014, with six out of seven developers surveyed boasting an average surge of 40 percent year-on-year, according to a study conducted by daily Dziennik Gazeta Prawna. In one case the hike amounted to 127 percent. Very low interest rates were one of the main reasons behind soaring sales. Analysts expect that in 2015 the situation will not change. “The most important factor shaping demand are low interest rates, which reduce the cost of bank borrowing and increase attractiveness of real estate as a form of investment,” Piotr Zybała, mBank Brokerage House analyst, was quoted as saying by the paper. Despite of the increased demand, prices remain stable. According to statistical data provided by the National Bank of Poland (Narodowy Bank Polski) the average price of one sqm in big Polish cities grew by 2 percent over the first nine months of 2014.